Lean. Digital. IPD

Lean. Digital. IPD.


PLACE Strategy reaches a new milestone!

This week our new project started with a bang! In the project development we use from service phase 0 Lean digital in an IPD project setup for a property developer. This should increase the efficiency of the planning phase and accelerate the execution through the seamless project structure.

In this blog we would like to report on methods, progress and experiences with this innovative form of processing and provide deep insights over the next few months throughout the entire project.

Optimize construction processes? - Challenge accepted

What certainly sounds like excessive advertising texts after the first reading has a deeper meaning. We have a drastic efficiency problem around construction. What is even worse is that often we simply don't care. We see this particularly clearly when we look back into the past, more precisely into the year 1950, a supposedly great leap backwards since not only computer technology, telecommunications and robotics have changed our lives enormously. Working methods in construction, on the other hand, have hardly changed noticeably, or can you see a difference?

Sure, I admit the lineup is exaggerated. I am convinced that in 1950, people were already complaining in exactly the same way about wrong or not thought-out planning, unclean execution or permanent changes. In my opinion, this does not indicate a purely technological problem, but rather a systematic one.

One that we could not or did not want to eliminate for the last 68 years?
Together with a property developer, we have investigated precisely this systematic problem and will eliminate it in the project that has now been launched. Of course, this does not work by simply imposing and applying new methods. Rather, it requires a long-term change in the way the project is handled.

We have deliberately chosen a time-critical project that is highly user-dependent (which has not yet been determined at this stage!) due to the business case we are aiming for, in order to address the full range of today's challenges in construction. The challenge is clear - how can construction projects be completed faster, cheaper, safer and more stress-free in the future, while fully satisfying the future (as yet unknown) buyer.

The project

Summer slump and heat wave, what could be better than discussing contracts. However, this week, the time had come to lay the groundwork collaborative project par excellence is laid.

The project is a district development by a property developer, divided into several sections. The development described in the following articles
Section 1 comprises an ensemble of buildings, which is intended to form a new living concept for fit and spry senior citizens in a rural alpine style. In addition to the development of this neighbourhood, this concept is also to be reproduced in a way that can be adapted to other locations.

At this point in time, only the idea of use and a first business case have been determined for section 1. In addition, the key trades for planning and execution have also already been determined. This is the ideal starting point for transferring as much know-how as possible to early planning. A rough time schedule is given in the business case, but this only refers to the transfer milestones of the respective buildings.

2 pillars of project management - Lean and IPD

The detailed process and the detailed schedule are completely worked out by the Last Planner System (LPS) at the appropriate level of detail. The workshops for training and implementation will take place in the next four weeks. In addition to methods such as the LPS, there will certainly also be cycle planning and control, provided it is suitable for repetitive elements. However, this will also be mapped in the LPS environment.

In order to make use of the location-independent application and use of the LPS and to avoid destroying the data, ideas and knowledge gained on a weekly basis - which is unfortunately so common with most analogue lean systems - we will fully digitalise the system in the project.

As shown above, our daily problems are systematic in nature and not just due to processes. Therefore the whole system of project management must be addressed. Our goal is an "Integrated Project Delivery" model, which regulates risks, opportunities and services with a contract at a fixed budget with the executing and planning trades and distributes them accordingly on all shoulders.

However, the focus is not on the contract as such, but on the desired cooperation and collaboration between all project participants and later also in the successful interaction with buyers and tenants. Unfortunately, these thoughts usually only begin as soon as a contract stipulates this.

Pillars of project management

Conventional supply and contract concepts in theory provide for separate areas of responsibility. In practice, this leads to chaos as soon as a transfer from one silo to another takes place. Traditionally managed projects suffer from this. Participant success and project success are only conditionally connected. It is made possible, almost forced, for individual project participants to gain their advantages at the expense of the overall project success.

Behavioural change through IPD

IPD, however, wants to achieve a change in behaviour by breaking down the areas of responsibility, calling for close cooperation between all key stakeholders and aligning the success of the participants with the success of the project. IPD strategically realigns the participant roles, underlying motivations and sequences of activities in a project to leverage the talents and skills of each participant to
at the most convenient time. Success is project-oriented within an integrated supply approach and is based on cooperation. The focus is on achieving common goals rather than meeting individual expectations. Success is measured by the degree to which common goals are achieved.

This naturally leads to increased demands on the preparation of the respective activities at an extremely early stage - namely now! Here we will make use of the entire range of lean tools, starting with the already mentioned Lean project management systems such as the Last PlannerĀ® System or cycle planning and control. However, these focus on the actual planning and construction processes and do not necessarily reflect the overall project progress, costs and budgets as well as the respective goals of the stakeholders.

Developing goals

The objectives are set over several and distributed over the construction period Workshops worked out. Experience shows that these will become more precise, shift or even change over time. For this purpose we use the "Design Thinking Approach". First of all, the exact project goals are worked out by the developer for the entire project and according to the individual key trades.

These targets will be incorporated into the final IPD contract and linked to the target budget accordingly. This target budget is calculated using the Target Value Design method. In contrast to traditional planning processes, where planning, budgeting and then adjustments / rescheduling are an iterative process, Target Value Design uses immediate feedback on budget, schedule and quality to directly and immediately influence development. It encourages the design of a detailed estimate, rather than estimation based on detailed planning.

To achieve this, information must be effectively communicated to all interested parties, feedback must be fed back and decisions must be made on an open and rational basis. If this is done correctly, traditional "value engineering" will disappear. In addition, by linking the decision-making process to the timetable in parallel, alternatives that require information can progress along parallel paths until the appropriate "last responsible moment". In this way the best possible added value is to be generated for the end customer.

Kick-off, what's next? - Start of planning and Lean implementation!

But enough with the grey theory. Design and implementation I will show over the next weeks and report from the project everyday life. So the question is, what's up?

In the project the planning now begins. From the first ideas, concrete goals have to be developed, which are then implemented in the planning. The goals also serve as a basis for the concretization of the IPD contract. Furthermore, all key trades have to be trained with Lean in order to achieve these goals.

So an exciting phase is about to begin!

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